- Advertisement -
- Advertisement -

Related

Investors Flee Hedge Funds

Powering Hedge Funds

Stockholm (HedgeNordic) – Capital is flowing out of the hedge fund industry for a third consecutive quarter, according to alternative data specialist Preqin. Investors pulled out $45.1 billion from the industry in the fourth quarter of 2018, which brought last year’s total volume of net outflows to $33.9 billion.

The fourth-quarter outflows were mainly attributable to equity-focused and CTA strategies, which registered net outflows of $20.9 billion and $21.3 billion, respectively. For the entire 2018, equity strategies posted the most massive redemptions across all main strategies tracked by Preqin. The net outflows amounted to $23.7 billion and brought the assets under management for the strategy down to $852.8 billion.

Multi-strategy vehicles and funds employing niche strategies were the only two groups of strategies that attracted investor capital in the fourth, posting net inflows of $1.4 billion and $7 billion, correspondingly. According to Preqin data, the hedge fund industry’s assets under management stand at $3.45 trillion as of the end of December, which marks a year-over-year decline of 3.5 percent.

Other sources corroborate Preqin’s findings. Hedge fund data provider Hedge Fund Research (HFR), for instance, writes that investors redeemed an estimated $22.5 billion from hedge funds in the four quarter. The fourth-quarter redemptions brought the hedge fund industry’s full-year capital outflows to $34 billion, leaving the industry with $3.11 trillion in assets under management.

 

Picture © Lightspring—shutterstock

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

Latest Articles

Hedge Fund Allocations Briefly Cross 10% in Finland

Hedge funds continue to play a meaningful role in the portfolios of Finland’s largest pension investors. Combined hedge fund allocations across six major institutional...

Sissener’s Best Year in Over a Decade, Momentum Extends into 2026

Sissener Canopus delivered its strongest performance in more than a decade in 2025, gaining 22.8 percent and marking its second-best year since inception. The...

VER’s Hedge Fund Portfolio Up Double Digits Again

The State Pension Fund of Finland (VER) allocates just over €1 billion to hedge funds and systematic strategies, representing a modest 4.3 percent of...

Nordic Hedge Funds Start 2026 Strong Despite Dispersion

After delivering a solid 8.0 percent return in 2025, Nordic hedge funds carried their momentum into 2026. The Nordic Hedge Index rose 1.0 percent...

Low Net Exposure Offers Little Shelter for Colosseum

Colosseum Global Alpha, managed by Oleg Sutjagin and Eric Andersson, entered the new year with a net exposure of around 12 percent, a positioning...

PO Nilsson Back at the Helm of PriorNilsson Yield

Per-Olof Nilsson, co-founder of the stock-picking boutique PriorNilsson Fonder, has returned as lead portfolio manager of low-risk hedge fund PriorNilsson Yield. Nilsson had served...

Allocator Interviews

In-Depth: Diversification

- Advertisement -

Voices

Request for Proposal

- Advertisement -
HedgeNordic
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.